Hess Reports Estimated Results for the Third Quarter of 2012

  Hess Reports Estimated Results for the Third Quarter of 2012

Third Quarter Highlights:

  *Net income was $557 million, compared with $298 million in the third
    quarter of 2011
  *Net income excluding items affecting comparability between periods was
    $495 million compared with $379 million in the third quarter of 2011
  *Oil and gas production increased to 402,000 barrels of oil equivalent per
    day, up from 344,000 in the third quarter of 2011
  *Production from the Bakken oil shale play in North Dakota increased to
    62,000 barrels of oil equivalent per day, up from 32,000 in the third
    quarter of 2011
  *Net cash provided by operating activities was $1,862 million, compared
    with $1,022 million in the third quarter of 2011

Business Wire

NEW YORK -- November 02, 2012

Hess Corporation (NYSE: HES) reported net income of $557million for the third
quarter of 2012, compared with $298 million for the third quarter of 2011. The
after-tax income (loss) by major operating activity was as follows:

                                              
                     Three Months Ended              Nine Months Ended
                     September 30, (unaudited)       September 30, (unaudited)
                     2012           2011          2012           2011
                     (In millions, except per share amounts)
Exploration          $  608            $ 422         $  1,887          $ 2,148
and Production
Marketing and           53               (23)           72               (23)
Refining
Corporate               (38)             (44)           (115)            (114)
Interest               (66)            (57)          (193)           (177)
expense
Net income
attributable         $  557            $ 298         $  1,651          $ 1,834
to Hess
Corporation
                                                                         
Net income per
share                $  1.64           $ .88         $  4.85           $ 5.40
(diluted)
                                                                         
Weighted
average number         340.0           340.2         340.3           339.8
of shares
(diluted)


Note: See the following page for a table of items affecting comparability of
earnings between periods.

Exploration and Production earnings were $608 million in the third quarter of
2012, compared with $422 million in the third quarter of 2011. The
Corporation’s average worldwide crude oil selling price, including the effect
of hedging, was $86.69 per barrel, up from $85.81 per barrel in the same
quarter a year ago. The average worldwide natural gas selling price was $5.88
per mcf in the third quarter of 2012, up from $5.74 per mcf in the third
quarter of 2011. Third quarter oil and gas production was 402,000 barrels of
oil equivalent per day, up from 344,000 barrels of oil equivalent per day in
the third quarter of 2011, primarily reflecting an increase in production from
the Bakken oil shale play and the resumption of operations in Libya. Net
production from the Bakken averaged 62,000 barrels of oil equivalent per day
in the third quarter of 2012 compared to 32,000 barrels of oil equivalent per
day in the same period last year. At the Waha concessions in Libya, net
production averaged 23,000 barrels of oil equivalent per day in the third
quarter of 2012. Due to civil unrest in the country, there was no production
in Libya in the same period last year.

Marketing and Refining generated income of $53 million in the third quarter of
2012, compared with a loss of $23 million in the same period in 2011.
Marketing earnings were $17 million in the third quarter of 2012, down from
$41 million in the third quarter of 2011 as a result of lower margins. Port
Reading refining operations generated income of $18 million in the third
quarter of 2012, compared with break even in the same quarter last year.
Refining operations generated a loss of $38 million in the third quarter a
year ago, almost entirely related to our share of HOVENSA's results. The
HOVENSA refinery was shut down in the first quarter of 2012. Trading
activities generated income of $18 million in the third quarter of 2012 and a
loss of $26 million in the same quarter of last year.

The following table reflects the total after-tax income (expense) of items
affecting comparability of earnings between periods:

                                                
                       Three Months Ended              Nine Months Ended
                       September 30, (unaudited)       September 30,
                                                       (unaudited)
                       2012          2011           2012         2011
                       (In millions)
Exploration and        $   62           $  (81)        $  62           $  244
Production
                                                                          

Third quarter 2012 results included an after-tax gain of $349 million from the
sale of the Corporation’s interests in the Schiehallion Field and associated
assets in the United Kingdom North Sea for $524 million. The results also
included after-tax impairment charges of $116 million that resulted from
increases to the Corporation’s estimated abandonment liabilities related to
non-producing properties. Additionally, the Corporation recorded a $56 million
after-tax charge to write off its assets in Peru following a decision to cease
future appraisal and development activities in the country. A one-time charge
of $115 million was also recorded to reflect the third quarter change in the
United Kingdom’s supplementary income tax rate to 20 percent from 32 percent
applicable to deductions for dismantlement expenditures.

Net cash provided by operating activities was $1,862 million in the third
quarter of 2012, compared with $1,022 million in the same quarter of 2011.
Capital and exploratory expenditures were $2,287 million, of which $2,260
million related to Exploration and Production operations. Capital and
exploratory expenditures for the third quarter of 2011 were $2,550 million, of
which $2,517 million related to Exploration and Production operations.

At September 30, 2012, cash and cash equivalents totaled $528 million,
compared with $351million at December 31, 2011. Total debt was $7,841 million
at September 30, 2012 and $6,057 million at December 31, 2011. The
Corporation’s debt to capitalization ratio at September 30, 2012 was 27.5
percent, compared with 24.6 percent at the end of 2011.

Hess Corporation will review third quarter financial and operating results and
other matters on a webcast at 10 a.m. today. For details about the event,
refer to the Investor Relations section of our website at www.hess.com.

Hess Corporation, with headquarters in New York, is a leading global
independent energy company engaged in the exploration for and production of
crude oil and natural gas, as well as in refining and in marketing refined
petroleum products, natural gas and electricity. More information on Hess
Corporation is available at www.hess.com.

===================================================================

Forward-looking Statements

Certain statements in this release may constitute "forward-looking statements"
within the meaning of Section 21E of the United States Securities Exchange Act
of 1934, as amended, and Section 27A of the United States Securities Act of
1933, as amended. Forward-looking statements are subject to known and unknown
risks and uncertainties and other factors which may cause actual results to
differ materially from those expressed or implied by such statements,
including, without limitation, uncertainties inherent in the measurement and
interpretation of geological, geophysical and other technical data.

                                                             
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)
                                                                       
                                           Third         Third         Second
                                           Quarter       Quarter       Quarter
                                           2012          2011          2012
Income Statement
Revenues and Non-operating Income
Sales (excluding excise taxes) and         $ 9,194       $ 8,665       $ 9,304
other operating revenues
Income (loss) from equity investment         -             (36)          -
in HOVENSA L.L.C.
Gains on asset sales                         376           103           -
Other, net                                  49           (6)          5
                                                                         
Total revenues and non-operating            9,619        8,726        9,309
income
                                                                         
Costs and Expenses
Cost of products sold (excluding             6,019         6,181         5,969
items shown separately below)
Production expenses                          712           609           677
Marketing expenses                           259           266           265
Exploration expenses, including dry          259           199           196
holes and lease impairment
Other operating expenses                     41            43            41
General and administrative expenses          167           177           172
Interest expense                             104           94            105
Depreciation, depletion and                  748           586           769
amortization
Asset impairments                           208          358          59
                                                                         
Total costs and expenses                    8,517        8,513        8,253
                                                                         
Income (loss) before income taxes            1,102         213           1,056
Provision (benefit) for income taxes        510          (54)         521
                                                                         
Net income (loss)                            592           267           535
Less: Net income (loss) attributable        35           (31)         (14)
to noncontrolling interests
Net income (loss) attributable to          $ 557         $ 298         $ 549
Hess Corporation
                                                                         
Supplemental Income Statement
Information
Foreign currency gains (losses),           $ 7           $ (2)         $ (5)
after-tax
Capitalized interest                         8             4             5
                                                                         
Cash Flow Information
Net cash provided by operating             $ 1,862       $ 1,022       $ 1,240
activities (a)
                                                                         
Capital and Exploratory Expenditures
Exploration and Production
United States                              $ 1,210       $ 1,600       $ 1,243
International                               1,050        917          793
                                                                         
Total Exploration and Production             2,260         2,517         2,036
Marketing, Refining and Corporate           27           33           42
                                                                         
Total Capital and Exploratory              $ 2,287       $ 2,550       $ 2,078
Expenditures
                                                                         
Exploration expenses charged to
income included above
United States                              $ 39          $ 48          $ 33
International                               88           68           67
                                                                         
                                           $ 127         $ 116         $ 100
                                                                         

(a) Includes changes in working capital.

                                                 
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)
                                                     
                                                     Nine Months
                                                     2012           2011
Income Statement
Revenues and Non-operating Income
Sales (excluding excise taxes) and other             $ 28,180         $ 28,733
operating revenues
Income (loss) from equity investment in                -                (133)
HOVENSA L.L.C.
Gains on asset sales                                   412              446
Other, net                                            83              1
                                                                        
Total revenues and non-operating income               28,675          29,047
                                                                        
Costs and Expenses
Cost of products sold (excluding items shown           18,667           20,062
separately below)
Production expenses                                    2,062            1,739
Marketing expenses                                     775              796
Exploration expenses, including dry holes and          708              769
lease impairment
Other operating expenses                               123              127
General and administrative expenses                    506              515
Interest expense                                       313              290
Depreciation, depletion and amortization               2,198            1,732
Asset impairments                                     267             358
                                                                        
Total costs and expenses                              25,619          26,388
                                                                        
Income (loss) before income taxes                      3,056            2,659
Provision (benefit) for income taxes                  1,369           849
                                                                        
Net income (loss)                                      1,687            1,810
Less: Net income (loss) attributable to               36              (24)
noncontrolling interests
Net income (loss) attributable to Hess               $ 1,651          $ 1,834
Corporation
                                                                        
Supplemental Income Statement Information
Foreign currency gains (losses), after-tax           $ 11             $ (7)
Capitalized interest                                   18               8
                                                                        
Cash Flow Information
Net cash provided by operating activities (a)        $ 4,090  (b)     $ 3,846
                                                                        
Capital and Exploratory Expenditures
Exploration and Production
United States                                        $ 3,694          $ 2,933
International                                         2,565           2,226
                                                                        
Total Exploration and Production                       6,259            5,159
Marketing, Refining and Corporate                     92              67
                                                                        
Total Capital and Exploratory Expenditures           $ 6,351          $ 5,226
                                                                        
Exploration expenses charged to income
included above
United States                                        $ 109            $ 146
International                                         226             189
                                                                        
                                                     $ 335            $ 335
                                                                        

(a) Includes changes in working capital.
(b) Net of payments to HOVENSA L.L.C. totaling $487 million to fully fund our
    share of previously accrued refining shutdown costs.

                                                           
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)
                                                                  
                                              September 30,       December 31,
                                              2012                2011
Balance Sheet Information
                                                                      
Cash and cash equivalents                     $    528            $   351
Other current assets                               7,629              7,988
Investments                                        401                384
Property, plant and equipment – net                28,144             24,712
Other long-term assets                            5,510             5,701
Total assets                                  $    42,212         $   39,136
                                                                      
Short-term debt and current maturities        $    621            $   52
of long-term debt
Other current liabilities                          7,227              8,048
Long-term debt                                     7,220              6,005
Other long-term liabilities                        6,492              6,439
Total equity excluding other                       21,327             19,659
comprehensive income (loss)
Accumulated other comprehensive income            (675)             (1,067)
(loss)
Total liabilities and equity                  $    42,212         $   39,136

                       
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)

(IN MILLIONS)
                           
                           Third Quarter 2012
                           United           International        Total
                           States
Sales and other            $  1,022            $    1,685              $ 2,707
operating revenues
Gains on asset sales          -                     376                  376
Other, net                   18                   26                  44
                                                                         
Total revenues and           1,040                2,087               3,127
non-operating income
Costs and expenses
Production expenses,
including related             241                   471                  712
taxes
Exploration
expenses, including           68                    191                  259
dry holes and lease
impairment
General,
administrative and            49                    30                   79
other expenses
Depreciation,
depletion and                 393                   332                  725
amortization
Asset impairments            58                   150                 208
                                                                         
Total costs and              809                  1,174               1,983
expenses
                                                                         
Results of
operations before             231                   913                  1,144
income taxes
Provision (benefit)          91                   445                 536
for income taxes
                                                                         
Results of
operations                 $  140    (a)       $    468      (b)       $ 608
attributable to Hess
Corporation
                                                                         
                           Third Quarter 2011
                           United              International           Total
                           States
Sales and other            $  830              $    1,307              $ 2,137
operating revenues
Gains on asset sales          -                     103                  103
Other, net                   4                    (10)                (6)
                                                                         
Total revenues and           834                  1,400               2,234
non-operating income
Costs and expenses
Production expenses,
including related             174                   435                  609
taxes
Exploration
expenses, including           120                   79                   199
dry holes and lease
impairment
General,
administrative and            44                    27                   71
other expenses
Depreciation,
depletion and                 209                   355                  564
amortization
Asset impairments            16                   342                 358
                                                                         
Total costs and              563                  1,238               1,801
expenses
                                                                         
Results of
operations before             271                   162                  433
income taxes
Provision (benefit)          108                  (97)                11
for income taxes
                                                                         
Results of
operations                 $  163              $    259      (b)       $ 422
attributable to Hess
Corporation
                                                                         
                           Second Quarter 2012
                           United              International           Total
                           States
Sales and other            $  1,043            $    1,946              $ 2,989
operating revenues
Gains on asset sales          -                     -                    -
Other, net                   1                    -                   1
                                                                         
Total revenues and           1,044                1,946               2,990
non-operating income
Costs and expenses
Production expenses,
including related             253                   424                  677
taxes
Exploration
expenses, including           75                    121                  196
dry holes and lease
impairment
General,
administrative and            50                    29                   79
other expenses
Depreciation,
depletion and                 335                   408                  743
amortization
Asset impairments            59                   -                   59
                                                                         
Total costs and              772                  982                 1,754
expenses
                                                                         
Results of
operations before             272                   964                  1,236
income taxes
Provision (benefit)          112                  480                 592
for income taxes
                                                                         
Results of
operations                 $  160    (a)       $    484      (b)       $ 644
attributable to Hess
Corporation
                                                                         

(a) The after-tax losses from crude oil hedging activities were $5 million in
    the third quarter of 2012 and $3 million in the second quarter of 2012.
    The after-tax losses from crude oil hedging activities were $89 million in
(b) the third quarter of 2012, $82 million in the third quarter of 2011 and
    $86 million in the second quarter of 2012.

                       
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)

(IN MILLIONS)
                           
                           Nine Months 2012
                           United           International        Total
                           States
Sales and other            $  2,988            $    5,328              $ 8,316
operating revenues
Gains on asset sales          -                     412                  412
Other, net                   19                   53                  72
                                                                         
Total revenues and           3,007                5,793               8,800
non-operating income
Costs and expenses
Production expenses,
including related             725                   1,337                2,062
taxes
Exploration
expenses, including           221                   487                  708
dry holes and lease
impairment
General,
administrative and            137                   86                   223
other expenses
Depreciation,
depletion and                 1,007                 1,120                2,127
amortization
Asset impairments            117                  150                 267
                                                                         
Total costs and              2,207                3,180               5,387
expenses
                                                                         
Results of
operations before             800                   2,613                3,413
income taxes
Provision (benefit)          313                  1,213               1,526
for income taxes
                                                                         
Results of
operations                 $  487    (a)       $    1,400    (b)       $ 1,887
attributable to Hess
Corporation
                                                                         
                           Nine Months 2011
                           United              International           Total
                           States
Sales and other            $  2,434            $    5,014              $ 7,448
operating revenues
Gains on asset sales          -                     446                  446
Other, net                   (10)                 -                   (10)
                                                                         
Total revenues and           2,424                5,460               7,884
non-operating income
Costs and expenses
Production expenses,
including related             490                   1,249                1,739
taxes
Exploration
expenses, including           357                   412                  769
dry holes and lease
impairment
General,
administrative and            141                   90                   231
other expenses
Depreciation,
depletion and                 527                   1,127                1,654
amortization
Asset impairments            16                   342                 358
                                                                         
Total costs and              1,531                3,220               4,751
expenses
                                                                         
Results of
operations before             893                   2,240                3,133
income taxes
Provision (benefit)          340                  645                 985
for income taxes
                                                                         
Results of
operations                 $  553              $    1,595    (b)       $ 2,148
attributable to Hess
Corporation
                                                                         

(a) The after-tax losses from crude oil hedging activities were $34 million in
    the first nine months of 2012.
    The after-tax losses from crude oil hedging activities were $300 million
(b) in the first nine months of 2012 and $244 million in the first nine months
    of 2011.

                                                            
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
                                                                      
                                        Third          Third          Second
                                        Quarter        Quarter        Quarter
                                        2012           2011           2012
Operating Data
Net Production Per Day (in
thousands)
Crude oil - barrels
United States                             109            82             109
Europe                                    80             68             98
Africa                                    75             59             79
Asia                                     17            15            18
Total                                    281           224           304
                                                                        
Natural gas liquids - barrels
United States                             16             13             15
Europe                                    2              3              3
Asia                                     1             1             1
Total                                    19            17            19
                                                                        
Natural gas - mcf
United States                             116            102            121
Europe                                    36             55             53
Asia and other                           462           458           465
Total                                    614           615           639
Barrels of oil equivalent                402           344           429
                                                                        
Average Selling Price
Crude oil - per barrel (including
hedging)
United States                           $ 90.17        $ 95.12        $ 91.97
Europe                                    75.08          65.92          76.20
Africa                                    90.78          89.41          89.01
Asia                                      102.85         112.31         105.89
Worldwide                                 86.69          85.81          86.86
                                                                        
Crude oil - per barrel (excluding
hedging)
United States                           $ 90.87        $ 95.12        $ 92.48
Europe                                    75.36          65.92          76.58
Africa                                    110.33         113.03         105.72
Asia                                      103.20         112.31         106.17
Worldwide                                 92.35          92.33          91.83
                                                                        
Natural gas liquids - per barrel
United States                           $ 38.35        $ 57.72        $ 40.75
Europe                                    56.82          82.18          66.15
Asia                                      64.67          71.30          75.16
Worldwide                                 41.71          63.64          45.56
                                                                        
Natural gas - per mcf
United States                           $ 2.18         $ 3.43         $ 1.55
Europe                                    9.15           8.93           9.98
Asia and other                            6.56           5.86           6.61
Worldwide                                 5.88           5.74           5.94

                                             
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
                                                 
                                                 Nine Months
                                                 2012        2011
Operating Data
Net Production Per Day (in thousands)
Crude oil - barrels
United States                                      104            78
Europe                                             91             86
Africa                                             75             70
Asia                                              17            14
Total                                             287           248
                                                                  
Natural gas liquids - barrels
United States                                      15             13
Europe                                             3              3
Asia                                              1             1
Total                                             19            17
                                                                  
Natural gas - mcf
United States                                      112            103
Europe                                             50             78
Asia and other                                    459           453
Total                                             621           634
Barrels of oil equivalent                         409           371
                                                                  
Average Selling Price
Crude oil - per barrel (including hedging)
United States                                    $ 92.53        $ 97.71
Europe                                             77.13          81.19
Africa                                             89.56          89.85
Asia                                               107.88         112.03
Worldwide                                          87.71          90.22
                                                                  
Crude oil - per barrel (excluding hedging)
United States                                    $ 94.46        $ 97.71
Europe                                             78.18          81.19
Africa                                             111.28         111.20
Asia                                               109.92         112.03
Worldwide                                          94.58          95.89
                                                                  
Natural gas liquids - per barrel
United States                                    $ 42.60        $ 58.86
Europe                                             75.67          78.09
Asia                                               75.95          74.18
Worldwide                                          49.05          63.70
                                                                  
Natural gas - per mcf
United States                                    $ 1.83         $ 3.66
Europe                                             9.56           8.64
Asia and other                                     6.64           5.85
Worldwide                                          6.01           5.84

                                                             
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

MARKETING AND REFINING SUPPLEMENTAL FINANCIAL AND OPERATING DATA (UNAUDITED)
                                                                         
                                           Third         Third         Second
                                           Quarter       Quarter       Quarter
                                           2012          2011          2012
Financial Information (in millions)
                                                                         
Marketing and Refining Results
Income (loss) before income taxes          $ 84          $ (23)        $ 7
Provision (benefit) for income taxes        31           -            (1)
Results of operations attributable         $ 53          $ (23)        $ 8
to Hess Corporation
                                                                         
Summary of Marketing and Refining
Results
Marketing                                  $ 17          $ 41          $ 18
Refining                                     18            (38)          8
Trading                                     18           (26)         (18)
Results of operations attributable         $ 53          $ (23)        $ 8
to Hess Corporation
                                                          
                                                                         
Operating Data
                                                                         
Sales Volumes
Refined petroleum products
(thousands of barrels per day)
Gasoline                                     214           222           212
Distillates                                  102           100           108
Residuals                                    48            53            54
Other                                       10           14           17
Total                                       374          389          391
                                                                         
Natural gas (thousands of mcf per           1,900        1,800        1,860
day)
                                                                         
Electricity (megawatts round the            4,765        4,900        4,405
clock)
                                                                         
Retail Marketing
Number of retail stations (a)                1,361         1,358         1,361
Convenience store revenue (in              $ 295         $ 316         $ 288
millions) (b)
Average gasoline volume per station          196           201           194
(thousands of gallons per month) (b)
                                                                         
Port Reading
Refinery throughput (thousands of            68            63            69
barrels per day)
Refinery utilization (capacity -             97.0%         90.0%         98.0%
70,000 barrels per day)
                                                                         

(a) Includes company operated, Wilco-Hess, dealer and branded retailer.
(b) Company operated only.

                                                                
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

MARKETING AND REFINING SUPPLEMENTAL FINANCIAL AND OPERATING DATA (UNAUDITED)
                                                                         
                                                         Nine Months
                                                         2012          2011
Financial Information (in millions)
                                                                         
Marketing and Refining Results
Income (loss) before income taxes                        $ 111         $ 28
Provision (benefit) for income taxes                      39           51
Results of operations attributable to Hess               $ 72          $ (23)
Corporation
                                                                         
Summary of Marketing and Refining Results
Marketing                                                $ 57          $ 137
Refining                                                   20            (130)
Trading                                                   (5)          (30)
Results of operations attributable to Hess               $ 72          $ (23)
Corporation
                                                               
                                                                         
Operating Data
                                                                         
Sales Volumes
Refined petroleum products (thousands of barrels
per day)
Gasoline                                                   212           226
Distillates                                                109           116
Residuals                                                  54            65
Other                                                     15           20
Total                                                     390          427
                                                                         
Natural gas (thousands of mcf per day)                    2,105        2,200
                                                                         
Electricity (megawatts round the clock)                   4,475        4,500
                                                                         
Retail Marketing
Number of retail stations (a)                              1,361         1,358
Convenience store revenue (in millions) (b)              $ 855         $ 899
Average gasoline volume per station (thousands of          192           195
gallons per month) (b)
                                                                         
Port Reading
Refinery throughput (thousands of barrels per day)         61            65
Refinery utilization (capacity - 70,000 barrels            87.6%         92.5%
per day)
                                                                         

(a) Includes company operated, Wilco-Hess, dealer and branded retailer.
(b) Company operated only.

Contact:

Hess Corporation
Investor Contact:
Jay Wilson, 212-536-8940
or
Media Contact:
Jon Pepper, 212-536-8550
 
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